Holiday Parties, Alcohol and Your Employee Liability

With the holidays fast approaching many companies are gearing up for the usual holiday party. Many companies are realizing that the lavish budgets they once had when the economy was thriving are a thing of the past. It is still important for company moral to show appreciation during this time of year so what is a company to do…

Many companies may opt for an office party during office hours to help offset the cost of adding families and spouses to the mix, or a luncheon or perhaps scrap the party and provide staff with a monetary gift to help save on the overall budget. In any case as an employer I bet you haven’t thought about your liability for hosting a company party or giving a gift?

So for those companies throwing a holiday party, here are a few precautions you should consider taking. First and foremost, it is still a company-sponsored event so as an employer you may be responsible not only for what happens at the party but perhaps after as well if you serve alcohol.
Omit alcohol? If this sounds absolutely awful and bah humbug then at least attempt to limit alcohol. Some great ways to do this, offer open bar the first hour before food is served. Then offer a cash bar after the meal. Or perhaps you only serve so many drinks to each of the employees a ticketed system may work best for this. One last option is to simply close the bar prior to the end of the party.

Absolutely Not? Then perhaps consider Designated Drivers or provide safe ways for your employees to get home such as a cab or limo service. The most important thing your employees safety and you want to avoid any additional risk for your company as a whole by being proactive, people love to let loose when the drink, which can be fun and great for employee bonding however it can also be a huge liability as an employer that is hosting a company event.

Since a holiday party is a company-sponsored event, all policies in your employee handbook remain in force. So this also applies to rules of sexual harassment, gossip, racial or sexually charged jokes are still off limits. Be sure to let employees know that although you would like everyone to relax and enjoy themselves, be aware that this is still a company sponsored event and such behavior will not be tolerated. One way to be sure everyone understands company policy is to hand out a copy of the company handbook with a letter of some sort stating that these guidelines will still apply even at holiday events. Sound like this will put employees on edge before the party even starts? You can always rely on your higher up staff of supervisors to set and example and keep an extra eye on their employees. Most office staff will know which employees they need to keep a closer eye on.

Finally, make sure you investigate any complaints. Failure to respond to any single complaint can lead to greater liability than the alleged misconduct.

Be sure to read next weeks Insight about Company gifting and the employers liability.